Two bids for Sembawang EC site

A land parcel at Sembawang Road and Canberra Link for an executive condominium (EC) development has received only two bids at the close of tender on Tuesday (Sep 30).

The Housing and Development Board (HDB) said Qingjian Realty (Residential) placed the highest bid of S$229.38 million, equivalent to about S$353 per square foot per plot ratio, while the other offer came from the combined bid of S$208.5 million by Verwood Holdings and TID Residential.

Analysts say this is the lowest number of bidders for a land site since 2001. The 28,745.9 square metre site is the 10th EC site sold this year and the third in Sembawang in 2014.

ERA’s Key Executive Officer Eugene Lim pointed out in a note several factors that may have contributed to the cautious view in the EC market. Among them is a recent EC project called Skypark Residences which still has 199 units out of the 506 units unsold.

ECs can only be launched 15 months after being awarded the site or upon the completion of foundation, whichever comes earlier. HDB second timers that are upgrading to EC projects are also subject to a resale levy.

Two other EC projects in the area were also awarded a site recently, which may have contributed to a supply glut for EC units. They are City Development’s Canberra Drive site awarded in January and Fraser Centrepoint’s Sembawang Avenue site, awarded in July.

Mr Lim added in his note that Qingjian Realty is well-positioned to price the upcoming units below S$1 million. Qingjian has plans for 600 units at the site, which is 400 metres from the new Canberra station. HDB says the award of the tender will be decided at a later date.